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tv   Real Money With Ali Velshi  Al Jazeera  March 26, 2014 7:00pm-7:31pm EDT

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employees, and can form an union. the school said it plans to appeal the ruling. those are the headlines. i'm tony harris in new york city. real money with ali velshi is next on al jazeera america. >> russia's problem is your problem, too. same goes for turkey, brazil, china. i'm looking at the tangled web that is our global economy and what it could do to your bottom line. also the labor ruling that might change the face of college football forever. plus you want jobs? i got jobs. i'll tell you about an industry that is booming right now in america, and how you can get in on the action. i'm ali velshi, and this is "real money."
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>> this is real money. you're an important part of the show. join us at twitter and real money. five years after a worldwide economic down turn. the risk of implosion to america and the globe has subsided considerably. but in our inter connected world there are growing political risks that can still do damage to your prosperity. here are three that you need to pay attention to. the escalating crisis over ukraine appears to be pushing russian economy which is the eighth largest economy in the world into recession. if that happens, and it's not entirely clear that it will happen, but if it happens the effect of a recession in russia will be felt far beyond that country's borders. we're seeing investors pulling $70 billion out of the country as fears of tighter sanction from the west set in.
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russia's retaliation for that could disrupt world energy markets. you heard me say it again. russia today is the second largest exporter of natural gas in the world. it's the third largest when it comes to oil. russia is not the only threat to the global economy right now. mass protests by growing and assertive middle classes in venezuela, turkey, even brazil, which is an economy even larger than russia's, by the way, are challenging the ruling order in those countries. the unrest has led to drastic economic measures like currency controls and interest rates hikes. those are moves that make markets jittery. many investors don't make distinction between them and they're pulling out of all emerging markets in response. why do you care? because mutual funds that you invest in are invested in these now-volatile markets. china's internal change may pose
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the biggest threat yet to all of our economic prosperity. economic reforms how they play out in the world second largest economy will be felt here in america and around the world for years to come. china's communist leaders have taken a political decision to loosen their control on china's economy. it it's a gazillion they hope will unleash market forces and transform china from an economy fueled by trade and experts and manufacturing to one that grows more like america does, on the buying power of the chinese consumer. already we've seen china's growth slow dramatically as it reengineers its economy. that has sent shockwaves through world markets. all of these challenges are detailed in a 2,014 report by eurasia group. eurasia's president and founder
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joins me now. thank you for being with us. let's start first of all with china. it's inevitable. countries and regions that have grown at more than 10% for decades, it always ends. are we seeing the end of the big growth in china? >> we're seeing the end of the period of state fixed investment and infrastructure driving the fast majority of the growth. this is real economic reform happening. it's transforming that society towards being more focused on consumption. that is very important to do. it's absolutely critical if they want to become an advanced economy over time but it's also dangerous because it means taking money away from inefficient state-owned enterprises. it means taking control away from the financial sector, allowing bankruptcies. which means people who are very powerful will become losers. so far first year in power the president of china has done a fantastic job and there has been relatively little pushback, but
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you're going to see political risk as they engage in the kind of reforms we have not seen for decades from that country. >> is there a cost to the rest of the world if china's economy slow down or do we gain if chinese become consumers. >> there is a little bit of a cost. you china is going from 10% to 7.5%. soldierly you're not going to see the safely level of purchasing, things like copper and steel to put up in buildings that they don't need to the same degree that they used to. but frankly so far the level of growth we're seeing in china, the reduction is extremely modest. it's been very incremental. no, the risks are is that this experiment doesn't work, and that the response is either okay, let's throw that out and we'll have a much more hard line nationalist response because that's the only way we stay in power, or we start to see a hard landing serious slow down because they can't maintain the economic reform.
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so far so good, but you know, no one wants to be the first person complaining in the chinese system. we know what happens to them. if suddenly we start to see large political classes saying we don't like these changes, that's a much greater risk today than it was a year ago, five years ago. >> let's take a tour around the world. so many of the places where we're seeing turmoil, economic turmoil there is a political root to it. argentina, it's a governance and political problem. venezuela, governance and politicaller problem. turkey has become a political problem. is there a risk that you take these emerging markets together an actions they've had to take to support their currency or quell the problems. >> it's not contagious. it's not the class of emerging markets. it's when you look at emerging markets many of them are badly governed. furthermore this year, 2014, 34
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emerging markets are having elections, which is vastly different. put those things together, not surprised there are head winds. economists say, great, we can sell them more stuff. political science people like me say they're much more demanding. they want more accountability from their leaders, and those leaders are not capability of providing it. you mentioned argentina, venezuela, thailand you can add to that, certainly turkey. there are countries out there whose growth is significantly under performing in many cases growing slower than we expect the united states in 2014 because governance is that bad. why would you invest in a country like russia, which is already riskier than the u.s. by large margin if you're not even going to get the growth that you get from the u.s. a lot of folks are taking cash out as a consequence. >> speaking of russia, i don't think there is anyone left in america who doesn't think this is important, but you called it from a geopolitical perspective
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the biggest thing since 2011. >> yes, the level the concern the crisis over ukraine but between the u.s. and europe, the sanctions we're seeing. they're not backing down. the ukraine is by far the most important interest that russia has outside of the country. putin's approval is 80%. that spiked 20% since the ukraine crisis has gone on. they'll put sanctions on the russians, and the russians will give it right back. >> with the natural gas. >> well, with first of all with reciprocal sanctions against the americans. but if the europeans join the sanctions, they're very exposed with down stream gas. the russians will cut it off and that probably means the european won't support the u.s. the danger here is that the united states and russia have a fragmented relationship, the u.s. once again has seen its
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setting a red line and having to set back as they did in syria, and the europe pianos are caught in we twist and between. the people who lose the most of all, the ukrainians. >> these are the threats we have to look at. thank you for being with us. well, more than $1 billion was wiped off the value of candy crush maker. the game maker went public today on the new york stock exchange despite the hype, the investors turned sour on the offering and the stock plunged 15% because cane digital relies on candy crush for 78% of its sales. many fear it will be a one-hit wonder. it was the most downloaded free approving a bowl and top grossing approving a bowl i in 2013.
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it's not clear that king had any other hit games in the pipeline. they're amateur athletes but we could be calling them something else, union men. something that could prove to be a landmark ruling, and later if you're looking for steady work and you like money, i'll point the way for you. keep it right here.
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>> vladimir putin shows no sign of backing down. there have been sanctions and the threat of more sanctions. president obama even managed to get russia cut out of the g-8, a coalition of the world's richest industrial nations. so far nothing has compelled putin to reverse his seizure of crimea. now president obama wants europe's support to target russia's energy sector, but it's a tough sell because of europe's dependence on russia's gas and
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oil. mike viqueira with more on russia. >> reporter: well its clear that president obama came to europe with a purpose. he wants to say that any sacrifice in the form of sanctions will be worth it. he spoke in a couple of venues. today a press conference with european leaders, and then a broadly the thematic speech sayg that the focus has to be turned back on the energy factor. he said that u.s. has been blessed with technology, ebbs' speaking of fracking, that the united states could come to europe's aid in this record, and noting that more liquified natural gas facilities have recently been licensed although those are a couple of years away, and talking about oil of course there is a moratorium on exporting american-produced oil america set to become the largest producer of energy by
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passing the saudis. but going back to the oil shocks of the 1970s. he admonished the europeans and caught many by surprise at an earlier press conference saying they had to make tough choices to diversify their own energy sector and enhance and produce more energy themselves. they said the united states has made tough choices as well something that republicans seized on pointing out the fact that the president has delayed time and time again the decision on the keystone pipeline. be that as it may the president in his speech, broadly thematic, lasting 35 mention and making the case that russian aggression has to be turned back and russia and the united states must be united if it comes t the sancti.
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>> the country's first union of college athletes. cane coulter argued the hours that he and his teammates devoted to football and the millions of dollars that it earned the university made them employees. the ncaa and the big ten conference along with the university oppose the union drive. northwestern plans to appeal the decision. joining us now to discuss the broader implications of this, michael yves, what a pleasure to have you with us on the show. tell me about the implications of this. what does this mean? >> reporter: what this means is college football players who receive scholarships it's compensation and they qualify as employees based on the definition of employee based on national labor relations act. they're able to collectively bargain on behalf their membership. they can collectively bargain against the university for
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whatever wishes and demands they want. >> what is the plan they behind this? >> reporter: the player association that was put together by the members of the football team they want three specific things. one, they want guaranteed healthcare for not only former players, but current players but former players once they leave the school. they also want better protocols to limit the risk of head injuries. but they also want the potential to seek outside sponsorship at some point. they seek compensation through their scholar at this point. they're find with that, but they want sponsorship outside that have. >> this is a regional office of the national labor relation board. is there some sense that this goes further? >> reporter: now it's very important to know this. this only effects private schools because the narb does not have jurisdiction over state funded schools. northwestern is a private school, so it doesn' does effecr
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schools. and they could form unions and collectively bargain. then you have the right to strike. we see that all the time. then you could see the schools lock out players. this could fundamentally changing college threats. >> we don't often talk sports on this show, but we know this is a big deal. mining for jobs. why the smarts kids are figuring out how to get a piece of the energy boom that is fueling everything from engineers, truck drivers to welders and wait until you hear how much money they're making. and why the nation's third largest bank got a rejection letter, and what you need to know about it. don't go anywhere.
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>> here's my friend wajahat ali with what is coming up next on "the stream" . you're discussing relations with india. >> that's controversial figure figure. >> now this is the guy who has denied entry to the u.s. because of alleged involvement in riots that left more than a thousand people dead. >> that's him but supporters say he has been good for their economy. we look at how this polarizing figure could impact u.s.-india relations. >> that's coming up on the
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stream.right after rea "real mo" >> members' energy boom is having a profound effect on the nation's economy. millions of jobs are being created. we have more evidence of that today from a new report. up 23% since 2007, as mary snow reports the benefits are rippling far beyond the country's oil fields. >> construction workers, healthcare aids, food servers, these are just a handful of the 20,000 workers needed in north dakota right now. with the oil boom generating more jobs than they can fill, state officials are teeming up with private industry to launch an $800,000 recruitment campaign. it's goal to lure the country's
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unemployed to north dakota boom towns with six figure salaries are far from unusual. but with a nation producing 2.7 billion barrels of crud oil the jobs extend well beyond the great plains. in the ten states where oil production is on the rise so is the demand for workers and those workers are well paid. the median pay for oil and gas workers across the country is about $56,000. compared to the national median wage of $32,000. among the highest paid patrol ae petroleum engineers. also in demand, mechanical engineers. chemists at $78,000 a year. welders and pipe fitters at $50,000 a year. the list goes on from truck tours rail workers to ship builders proving the oil boom is
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a jobs boom coast to coast. mary snow, al jazeera. >> well, once smart young person looking to get in on the new american boom is eve. she'll receive her bachelor's degree in may, and she interfered for her dream job at exxonmobil. eve, good to see you. welcome. >> hi, ali. >> you're looking at that story thinking you made good decisions. exxonmobil, it's the gold standard when it comes to oil and gas industry. >> i first met exxonmobil at a fair. and all other oil and gas companies like bp, cheveron, i approached exxon memorabilia likexxonmobil, it's mydream com. i was interviewed right on the spot. the lady interviewing me was very interesting. she shared exxonmobil life for
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me. they were looking to hire someone who speaks russian, which i was a perfect candidate. the plan was that i could start a,and learn the environment a little bit, and after that i could go and work offshore. they were looking for women chemical engineers to hire, and >> how did that go? did they offer a position? >> the interview went excellent. so they're still in the process of looking, so they have to get back to me. >> you also interviewed with dow chemical. they did offer you something. >> yes, when you mine so much oil you have to do something with it. dow chemical comes and makes products out of it. they need chemical engineers to do engineering--plant supervising. that's the type of job that they offered to me for delaware. but my husband works in
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new york. >> it's a train ride but a long one. you made these decisions, did you want to be a chemical engineer, or did you say there is a future here, it's lucrative and it's safe. >> both my parents are engineers. when i went to school i wanted to be doctor. >> what did they think about that? >> they wanted me to do whatever i wanted to do, but i figured out pretty quick that i like to solve problems. and the real technology, engineering, that's why i went to engineering so i could solve problems. >> but you're in the really sexy high paid part of engineering. was that a decision, too? >> i think i was lucky because i was always good in chemistry, especially my freshman year i was tutoring students. then this idea came up, why not chemical engineering, it was one of the best decisions in my
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life. >> we wish you the best, come back and tell us where you end up working. eve is a chemical engineer candidate and she graduates in may. >> there are mean meant of plenh paying jobs that don't take a bachelor's degree. joining us from denver, bruce, thank you so much for being with us. >> thank you for having me. >> so eve is one part, and probably the highest paid part of the structure without being oil company executive, but there are a lot of opportunities, some that don't require degrees, and you bring students who are qualified to meet those needs. >> absolutely. we have partnerships with nine
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or ten local companies here that helped us device a curriculum to train the technicians that are needed out in the oil and gas industry. >> tell me what some of those technicians are. what training are they looking for? >> they go anywhere from a rou e about, and some go into the health and environment areas, anywhere where we can help out the engineers. the technicians are there to do the hands-on work and get it done. >> you have a two-year associate degree in oil and gas technologies. you have various one and two merit programs. it wouldn't occur to me that a roustabout studied at a school. i felt it was an apenties ship because you know somebody and you go out in the field, but you formalized the training. >> we don't just need laborers, we need people who
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have those technical skills. and oil and gas industry has identified that and helped us build this program. we're teaching skills that they can use across the board. so the technology and drilling has changed so much companies have wanted to use skilled laborers, or they're hiring where they need people with those technical degrees. >> some of these jobs are paying $20 to $25 plus overtime, and you're getting people who are mid career. it's not just kids. >> right, we have high school kids. we've got students after high school. we've got the 30-year-olds who are changing careers. plus i have some that have been in other careers that are
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changing at the age of 40 and 50. they see that the living is good. the oil cops take good care of their people, and they want to get on board of that. >> bruce, thank you. >> two settlements were announced that will have banks of america paying out for conduct involved in the crisis. they'll pay $9.3 million to settle fade allegations. the other is a rare and significant settlement that will hold a bank ceo accountable for behavior tied to the financial crisis. former bank of america ceo ken lewis will pay $10 million and be barred from serving as an executive in a public company for three years because of his role in the bank's acquisition
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of merrill lynch in 2008. that merger saved merrill from bankrupt sue but lewis and his executive team misled shareholders so they would approve the $50 billion buyout. rejected. it's not a word you want to hear when your bank is in the same sentence, but the federal reserve has rejected citigroup's plan to reward shareholders with dividend payments and repurchase of its own stock. that sent citi stock down 5052%. whether you own stock outright or in a mutual fund or bank there, this is not a reason to panic. so don't no matter what you read or hear about this. it's wonky stuff but it's important, the fed objected to the capital plans of four other smaller banks. let me give you perspective. last week citi was among 29 big banks that passed the fed's
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stress test based on their capital levels. for my money i'm glad the fed is taking a hard long look at the financial health and contingency plans of america's banks in the wake of the financial crisis. citi will have to resubmit some documents, while that is a blow to citi's executives it's not something that should keep you awake at night. so pleasant dreams. that's it for tonight. i'm ali velshi. thanks for joining us. >> these protestors have decided that today they will be arrested >> these people have chased a president from power, they've torn down a state... >> what's clear is that people don't just need protection,
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they need assistance. >> hey, i'm wajahat ali and you're in "the stream." narendra modi, is poised to become india's news prime minister. what would this mean to the world's largest democracy? lisa fletcher is way on vacation, but we've got my